The greenback, in terms of the US Dollar Index (DXY), has now reverted the initial positive mood and retreats towards the 95.00 neighborhood, where it seems to have met decent contention. What is next? Find out in the following 3 August US Dollar Index Fundamental Forecast.
3 August, GKFX – The index quickly gave away the initial advance to the 95.40 and returned to the 95.00 area following headlines from the PBoC, which decided to adjust the reserve requirement on FX forward trading to 20%, as per news released by Bloomberg.
US July’s Non-farm Payrolls disappointed consensus at 157K
Furthermore, China announced retaliatory measures including differentiated tariffs on US products worth $60 billion.
The greenback is also deriving some downside pressure after the US economy created 157K jobs during last month, less than initially forecasted. Further data from the US labour market report showed Average Hourly Earnings expanded 0.3% inter-month and 2.7% on a yearly basis, both prints falling in line with prior consensus. In addition, the unemployment rate ticked lower to 3.9%.
Later in the day, the ISM Non-manufacturing is also due.
3 August US Dollar Index Fundamental Forecast
As of writing the index is losing 0.08% at 95.10 facing the next down barrier at 94.69 (10-day sma) seconded by 94.45 (55-day sma) and finally 94.23 (low Jul.31). On the upside, a break above 95.38 (high May 29) would target 95.53 (high Jun.28) en route to 95.65 (2018 high Jul.19).
This article 3 August US Dollar Index Fundamental Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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